My only suggestion is to provide a place/space for the cats to retreat to until Teddy gets out of this "phase". Cats will only tolerate so much, they will beat the stuffing out of the dog and maybe it's the other way around you should be looking out for. Even really big dogs will be wary of cats, sorry not much help. Run and chase was always the most favorite game in our household and Sprocket NEVER won, but boy he sure did like to chase.